PayPal inked a deal with two major college athletic conferences to help facilitate the millions of dollars schools will soon start paying their student athletes.
🤝 The partnerships, reached initially with the Big Ten and Big 12 conferences, will kick in July 1. That's when the floodgates open for revenue sharing following a recent court settlement with the NCAA.
💰 The conferences are cashing in. The Big 12's deal is worth $100 million over five years, CBS Sports reported.
📚 Between the lines: PayPal stands to gain from athletes keeping at least some of their money — potentially millions in the aggregate — within the PayPal ecosystem.
By keeping money in their PayPal wallets, athletes can "access all the benefits of PayPal's commerce ecosystem," from buying tickets to purchasing books and, eventually, paying for tuition, the company says.
💵 Follow the money: PayPal generates the majority of its revenue from payment transaction fees.
💰By the numbers: Individual schools across the country will be able to pay up to $20.5 million to their student athletes next year, with the cap increasing each year.
